A voucher scheme to allow cruise passengers to dine onshore could be a "panacea" for the Island's struggling restaurants, according to the Chamber of Commerce.

Norwegian Cruise Lines (NCL) is offering its clients vouchers of up to $50 which can be spent on food in Island bars and restaurants.

Chamber of Commerce restaurants division chairman Philip Barnett said the plan could throw a lifeline to restaurants which are facing a dire struggle to stay in profit.

"It could be the panacea to help restaurants to overcome the (perception) that cruise passengers enjoy the facilities and infrastructure but don't (help) business," he told Hamilton Rotary last week.

"Many restaurants are showing an incredible redemption rate. This really has gone a long way to answering the question `cruise ship passengers are nice, but what do we get out of it?'

"It is a very positive direction for things to be going on and credit to Norwegian Cruise Lines."

When NCL announced the scheme - where passengers pay up to $10 for a $50 dollar dining voucher - last summer, it said it was the first such scheme by a cruise line anywhere in the world.

Former Tourism Minister David Allen said the initiative would pump about $2 million into the Bermuda economy.

At his speech to Rotary, Mr. Barnett said restaurants were living on a knife-edge and he complained about delays in getting work permits, which was hampering the industry.

He warned many restaurants would go bust or have to hike their prices by up to 25 percent if new Government legislation to make overtime payments after 40 hours was applied to the industry. But Acting Labour Minister Senator David Burch said sloppy applications from employers was one reason there were delays in work permit approvals.